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Investors are considering whether Energy Transfer at around US$19.19 remains a value opportunity or whether much of the potential has already been reflected in the current price.
The stock has recorded returns of 1.4% over 7 days, 2.3% over 30 days, 15.7% year to date and 26.8% over the past year, which may have influenced how the market views its risk and reward profile.
Recent coverage has focused on Energy Transfer’s position in the US energy infrastructure space, including commentary on how pipeline and midstream operators are responding to shifting energy demand and long term capital projects. There has also been ongoing discussion around how funding, regulation and long duration contracts could influence cash flows, which provides useful context for interpreting the current price action.
Energy Transfer currently has a valuation score of 4/6, prompting a closer look at how different methods, from cash flow based models to market multiples, compare. This also highlights why many investors now prefer a more holistic valuation framework, which this article will return to at the end.
Find out why Energy Transfer’s 26.8% return over the last year is lagging behind its peers.
A Discounted Cash Flow, or DCF, model estimates what a business could be worth today by projecting its future cash flows and discounting them back to the present using a required return.
For Energy Transfer, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $5.44b. Analyst and model projections suggest free cash flow figures, expressed in dollars, such as $6.43b in 2026, $6.14b in 2027, $4.76b in 2028, $6.08b in 2029 and $7.19b in 2030, with later years extrapolated by Simply Wall St rather than based on direct analyst estimates.
Using a discount rate to bring these projected cash flows back to present value, the model arrives at an estimated intrinsic value of $46.06 per share. Compared with the recent share price around $19.19, the DCF output indicates the stock is about 58.3% undervalued within this framework.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Energy Transfer is undervalued by 58.3%. Track this in your watchlist or portfolio, or discover 58 more high quality undervalued stocks.
ET Discounted Cash Flow as at Apr 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Energy Transfer.
For a profitable company, the P/E ratio is a useful way to see how much you are paying for each dollar of earnings. This is why it is the preferred multiple here. What counts as a normal or fair P/E usually reflects what the market thinks about a company’s growth prospects and risks, with higher growth or lower perceived risk often linked to higher P/E levels.
Energy Transfer currently trades on a P/E of 15.82x. This sits above the Oil and Gas industry average of 15.07x, but below the peer group average of 19.48x. Simply Wall St’s Fair Ratio for Energy Transfer is 28.21x. This Fair Ratio is a proprietary estimate of what the P/E could be, given the company’s earnings profile, industry, profit margins, market cap and specific risks.
Compared with simple peer or industry comparisons, the Fair Ratio aims to be more tailored, since it combines these company specific factors instead of relying on broad group averages. Setting the current P/E of 15.82x against the Fair Ratio of 28.21x shows that the shares are trading below this framework’s implied level.
Result: UNDERVALUED
NYSE:ET P/E Ratio as at Apr 2026
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Earlier we mentioned that there is an even better way to understand valuation. Narratives let you attach a clear story about Energy Transfer to your assumptions for future revenue, earnings and margins, then connect that story to a fair value that you can compare with today’s price on Simply Wall St’s Community page. Different investors may, for example, build a more optimistic Energy Transfer Narrative closer to the US$25 analyst target, or a more cautious one nearer US$18.5. Those Narratives will update as new news, earnings and project information are reflected in the data.
Do you think there’s more to the story for Energy Transfer? Head over to our Community to see what others are saying!
NYSE:ET 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ET.
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